The German chemical giant BASF is increasing the prices of ingredients used in cleaning products. These “significant” price hikes reach up to 30 per cent in response to rising costs for raw materials, transport, and packaging. Supply chains are currently facing major disruptions due to the ongoing war in the Middle East. This move demonstrates that the conflict with Iran impacts more than just the price of petrol, diesel, or gas.
Price increases specifically target the division supplying components for both domestic and industrial cleaning agents. BASF warns that costs for certain products may even surge beyond the 30 per cent mark. Major consumer goods companies like Unilever and Henkel, which produce brands such as Cif and Persil, are key BASF customers. Consequently, these manufacturers may pass the higher raw material costs on to consumers.
European chemical firms are suffering from the Middle Eastern conflict in several ways. Many raw materials, including those for detergents, are petroleum-based. Prices have climbed following attacks on oil installations and Iran’s blockade of the Strait of Hormuz. Furthermore, chemical production requires vast amounts of gas, which has become significantly more expensive during the hostilities.
BASF is not the only firm adjusting its pricing since the war began. Fellow German speciality chemicals company Evonik announced a 10 per cent price increase for methionine, a key animal feed ingredient. Meanwhile, their competitor Lanxess stated that raw materials for rubber tyres will become 50 per cent more expensive.
@ anp | NEWS BRAINPORT
